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How To Keep Track of Your Business’ Finances

Learning how to keep track of your business finances can be very tricky because it depends mainly on the type of business you are operating. If you operate a small business with sales under $100,000 a year, you should be able to locate a spreadsheet software program on your home computer to do the job. If your sales are over $100,000 a year and less than a million dollars a year, try to locate a business plan software program to help you. If the business is making more than a million dollars a year, it makes sense to get advice from a certified public accountant. Follow us to learn how to keep track of your business finances.

First, if you have a small business, you can simply manage all your company’s finances by using your home computer. Some computers are sold with programs that are designed for small businesses. Make sure you check your home computer before you invest any money. Open the spreadsheet program and save it as the balance sheet. List all the business assets in one column and then list all the liabilities in the next column. Subtract the liabilities from the assets and you will find out how much money the business is worth.

Next, if you are operating a more complex business, the process gets more difficult when trying to manage cash flows. Keep in mind that if your business is making more than $100,000 a year you will need to find a way to monitor cash more closely. Get a business plan software program. This type of program shows you how to control and manage expenses. You will also learn how to create profit and loss statements. A business plan software program will also teach you how to set up cash flow statements so that you will know how much money is on hand to pay the company’s monthly expenses.

Finally, if your company is bringing in more than a million dollars a year, it makes sense to talk to an accountant. A certified accountant can help you select an accounting program that will help you manage the business efficiently. A high percentage of businesses fail because the owners do not have the financial skills to deal with accounting principals and the frequently changing tax laws. While you are managing your business finances, keep in mind three important factors. Your financial statements will tell you what is currently happening and why. They will also tell you what might happen in the future. These statements will also help you make good business decisions.

posted by SherriLee in Finance and have No Comments

Best Business Software

The best business software could well easily be Microsoft’s Office which consist of Word for documents, Excel for financial calculations and graphs, Powerpoint for slide show presentations and Access for database use. Without these applications combined in Microsoft Office, any companies cannot function effectively. For instance, a law firm needs to produce legal documents and letters for its clients like a sales and purchase agreement that can go to hundreds of pages with all the technicalities.

Using Microsoft Word

Word is the most commonly used software application in any business. It has all the necessary text formatting like fonts, mail merge, typing of letters, drawing simple diagrams and adding of clip art that comes together with the software. If you are in the business of producing e-books and informational products, then you will certainly need Word to prepare the necessary documents.

Payroll Software

For large companies, payroll can be a dreadful task.  So much information and so many resources go into the the payroll process including time cards, payroll taxes and accounting. Using payroll software makes calculations and organization so much easier especially when it comes to due dates.

Microsoft Excel for Financial Calculations

You can add formula easily in each of the Excel Spreadsheet for easy calculations like those in tender documents where you have the quantity, unit price and total amount. By just keying in the numbers, the total price can be tabulated easily for you without you having to calculate it yourself. You can also create graphs, pie charts, etc from a table of data and numbers on the go. There is an inbuilt mechanism in Excel for this purpose. Financial institutions can then project their profit and loss data in a graph for easy understanding.

Powerpoint for Presentations

To present a company’s products and services, you need to prepare them using Microsoft’s Powerpoint which allows slide transitions, animation, adding of sound and animated pictures for better visual effects. In a meeting, usually Powerpoint presentations are prepared and projected against the white wall or large screen using a projector. This can also help to clinch millions of jobs by convincing the clients of the company’s products and services.

Access for Database

To send out thousands of emails or marketing letters, you need to have a database or table of details kept in your computer. Access was created for this sole purpose. You can also sort the data based on its individual fields like name, address, country, occupation, income range, et cetera. A multinational corporation will always have a large database of its clients like banks keeping its database of customers like those with credit cards and the relevant details.

Conclusion

Therefore, the best business software is easily Microsoft Office which has 4 main applications to cater to all businesses across each and every expertise. It is also the best selling software today. You cannot run a business without this nifty software.

posted by SherriLee in Business and have No Comments